The Bank of Japan will discuss tweaking its yield curve control policy at a policy board meeting Friday to let long-term interest rates rise beyond its cap of 0.5% by a certain degree, Nikkei has learned, in what would be a shift toward a more flexible policy approach. Under its yield curve control, the central bank buys large quantities of Japanese government bonds if 10-year yields look likely to go beyond its allowable range of 0.5% below or above zero, resulting in market distortions. The proposed change would keep the rate ceiling, but allow for moderate rises beyond that level. Since the ceiling was raised from ... (full story)